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FHA Gift Funds: Guidelines and Eligible Donors
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This is how to use gift funds the right way. 1- First, in most cases, you can use up to 100% of the down payment and closing costs as gift funds. However, if the loan you are applying for requires reserves, you can’t use gift funds for that. Reserves must come from your own funds. 2- When receiving gift funds, it is highly recommended that you don’t receive them directly. Instead, ask the person gifting you the funds to send them directly to the escrow at the end of the transaction. 3- If you re
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Home Buyers! You can be gifted (not borrow) your down payment to buy a home from a family member. This requires completing a gift letter that can be provided by your mortgage person. Make sure the wording in the letter clearly states that the funds are indeed a gift and not intended to be paid back. Here are acceptable additional sources of where your down payment can come from : 💰Personal savings 💰Proceeds from the sale of another property 💰TFSA or RRSP 💰In some cases, investment income
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